The Indian subsidiary of The ForeignCompany is a limited liability company in which the holdings and holdings come from non-resident persons/companies (except Pakistan and Bangladesh).
After the Indian government launched the "Make In India" campaign and created incentives and eliminated red carpet; Foreign companies seek the Indian market because it is growing rapidly. Resources are also available in INDIA. A foreign citizen (who is not a Pakistani or Bangladeshi citizen) or an entity established outside India (who is not a registered entity in Pakistan or Bangladesh) can invest and own a business in India by acquiring shares in the Indian company Responsible for foreign direct investment is subject to Indian policy. The other main criteria are at least one Indian director who is an Indian director and whose resident in India must create an Indian company with an address in India.
Foreign companies can invest in India in two ways: Automatically and with Government Approval.
"Automatic Route: by regulation 6 of communication FEMA 120 / RB-2004 of July 7, 2004, as amended, an Indian party was authorized to invest/participate in joint ventures abroad (JV) / 100% subsidiaries (WOS) according to the upper limit prescribed by the reserve bank from time to time.
As of July 3, 2014, it was decided that any financial commitment (FC) greater than USD 1 (billion) (or equivalent) during a fiscal year requires the prior approval of the reserve bank, even if the full FC of the death The Indian side is on the automatic route within the authorized limit (ie within 400% of net assets according to the last audited balance). There is a detailed list of companies and investments, as well as rules and regulations to keep in mind when investing through the automatic route. Foreign direct investment of up to 100% is allowed on the automatic route in most activities/sectors in India. "
Investments in activities/industries where no automatic the route is available can be made with government approval using the government-approved FDI method.
Features
Perpetual succession: the corporation continues until it is legally dissolved. Since a limited liability company has its own legal identity, it is not affected by a member's death or other resignation and continues to exist regardless of any change in ownership.
Compliance: A the company must examine its accounts regardless of sales and file an annual return within the government deadline if no sanctions are imposed and law enforcement begins.
LIMITED LIABILITY: The biggest advantage of the Indian subsidiary is limited liability. Members are only responsible for unpaid actions they own and no more. Shareholders have no personal responsibility to a company's creditors for the company's debts.
Property: Private Limited Company is an artificial person who can acquire, own, appreciate, and sell a property in your name. Property can be tangible or intangible, such as machinery, land and buildings, factory, brand, patent, etc., shareholders cannot exercise their rights over the corporate property.
Foreign direct investment: 100% of foreign direct investment is allowed in many sectors without government approval in many cases. LLP requires prior government approval and foreign direct investment in real estate and associations are not permitted.
Investment opportunities: There are two ways to invest and acquire shares in a business: (a) Automatic investment mode (b) State approval.
Documents Required for Indian Subsidiary of Foreign Company Registration
ü Passport
ü Address Proof
ü Driving License
ü Residence Card
ü Bank Statement(Not older than 2 months)
ü Government issued a form of identification containing the address.
If You have any Query Related to Indian subsidiary of a foreign company Feel Free To contact Corpseedites PVT. LTD.
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